Shekel Brainweigh Limited (ASX:SBW) has announced the sale of its Healthweigh business, an own-brand manufacturer/distributor of a range of healthcare and fitness scales including Physician, Special Needs, Portable and Baby/Neonatal, to its key US distributor Rice Lake Weighing Systems. The sale price of US$3.43m represents 1.1x annual revenue of US$3.1m, which is consistent with RaaS estimates. If we valued the balance of SBW’s revenue (US$28.8m – US$3.1m = US$25.7m) at 1.1x we derive a valuation for SBW ex-Healthweigh of A$0.216/share (US$25.7m by 1.1x = US$28.3m/0.68 (AUDUSD) = A$41.6m/192m shares = A$0.216). We view Healthweigh as the lowest growth and most competitive business within the SBW portfolio, so the 1.1x revenue should be seen as a base case, in our view. SBW intends to reduce debt with the proceeds (A$5m) to strengthen the balance sheet. As a reminder SBW has started the CY22 year strongly with H1 CY22 sales growth of 23%, gross profit growth of 17% and a lower annualised cash burn. The company has also managed working capital exceptionally well relative to its hardware peer group. We expect continue momentum in the seasonally stronger H2 CY22.

Shekel Brainweigh Ltd.

• 23 Nov 22
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Smart Parking Ltd (ASX:SPZ) is engaged in the design, development, and management of its proprietary parking technology across Australia, New Zealand, the United Kingdom and Germany. The company services more than 800 customers globally and manages almost 900 sites, with a global target of 1,500 sites by 2025. On a monthly basis, SPZ’s technology processes more than 13m vehicles passing through its sites. Its technology is processing more than 31m transactions a day. The company generated a 68% increase in revenue in FY22 to $38.1m while adjusted EBITDA increased almost three-fold to $8.8m. FY22 was also a year of expansion for Smart Parking in which it built new foundations in Germany, Australia and New Zealand while continuing to scale the core business in the UK. Currently, 80% of revenue is generated in the UK and while this region is still growing, with 303 new sites in FY22 and acquisition opportunities, Smart Parking is looking to expand into European markets, with Germany its first foray. This expansion should progress the company to its stated growth target of 1,500 sites globally under management by June 2025. SPZ as recently as late October affirmed this target was on track.

Smart Parking Limited

• 08 Nov 22
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Symbio Holdings Ltd (ASX:SYM), formerly known as MNF Group, is a software and services company specialising in voice communications. The company owns technology which is focused on replacing old-fashioned telecoms networks with modern, cloud-based communications services to unlock new applications for calling, messaging and phone numbers. Headquartered in Sydney, Symbio is profitable, with net cash in hand of more than $40m for its Asia Pacific-expansion plans and is delivering returns to shareholders through dividends. The FY22 total dividend was $0.08/share, including a special dividend of $0.03/share from the part proceeds of the disposal of its direct business. The company underwent a major restructure in FY22, selling its direct business to Vonex (ASX:VN8) to focus on its enterprise SaaS businesses which service enterprise and government (UCaaS), large corporates and software companies (CPaaS), and telcos and managed service providers (TaaS). In that process, the company changed its name to Symbio. The company has outlined that its ambitions for FY23 include acceleration of its expansion into Asia. This encompasses the development of its Malaysia network and its launching with strategic customers, achieving profitability in Singapore, and building its East Asia cloud hub, with next steps into Taiwan where the company has announced it will open service availability in 2023.

Symbio Holdings Limited

• 08 Nov 22
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AVA Risk Group Ltd (ASX:AVA) develops, manufactures and sells advanced risk management technologies (security and monitoring technology products) for perimeter intrusion detection and access control. Its key clients are high-value asset and critical infrastructure holders (including governments) and its offerings are deployed across ~3,500 sites in over 70 countries. AVA’s solutions encompass three segments/brands: (1) Future Fibre Technologies (FFT), a Melbourne-based manufacturer of advanced fibre optic based sensors (for application to perimeters, pipelines, conveyors, power cables, data networks); (2) GJD Manufacturing (GJD), a recently acquired UK-based designer and manufacturer of optical sensors and illuminators for perimeters; and (3) BQT Solutions (BQT), a New Zealand-based manufacturer of smart locking and access controls including high security cards and biometric readers. AVA underwent a notable strategic transition in FY22 with: (1) The October 2021 disposal of its services division (international logistics and storage for high-value assets) netting $42m proceeds with $39m (16.1 cps) subsequently distributed via special dividend/capital return; and (2) Increased focus on growing its higher-margin security technology product offerings (i.e. FFT and BQT) particularly in the US and Europe via market share gains, acquisitions (e.g. GJD), and entering new or adjacent markets (e.g. FFT’s ‘Aura-IQ’ condition monitoring solution received its first commercial order in July 2022). AVA has a three-year target of increasing revenue to $70m-$100m and a new policy to pay at least 35% of EBITDA in unfranked dividends annually. Meanwhile, CEO/Executive Director Rob Broomfield is retiring and will be replaced by Mal Maginnis (effective early-January 2023).

Ava Risk Group Ltd.

• 08 Nov 22
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Spectur Limited (ASX:SP3) is a surveillance tech company using solar security, sensing and visual AI solutions to watch and act on assets managed by its platform. The company has more than 2,500 devices deployed with greater than 600 customers, with a plurality in Western Australia, where it is headquartered. SP3 estimates it has 25% of the WA market and it has ambitions to expand operations across Australia, New Zealand and the US where it is both establishing sales teams and seeking reseller agreements. The company has the dominant name in solar beach camera-based platforms where it has more than 50 beach warning systems deployed, another 16 purchased and waiting to be deployed, and a pipeline of an additional 20 beach warning systems on its radar. Spectur also has its technology deployed across construction sites, mobile towers, military bases, and council assets. The company recently raised $3.0m before costs, through a share placement to raise $1.86m and security purchase plan (SPP) which raised $1.15m, to fund working capital for its regional expansion plans, marketing programmes, inventory purchases and platform improvements.

Spectur Ltd.

• 08 Nov 22
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Alcidion (ASX:ALC) was founded in Adelaide in 2000 with the aim of driving meaningful change in health outcomes with smart technology and joined the ASX in January 2016. ALC aims to deliver value to existing patient and clinician information systems by aggregating the data available in healthcare systems, centralising it in the company’s Miya Precision platform, and using that data to support health professionals in their clinical decision-making. ALC has expanded organically and by acquisition into the Australian, New Zealand and UK markets with a significant step-up in the UK since acquiring MKM Health in 2018. ALC went on to acquire Silverlink in December 2021 funded by a $55m capital raising. Silverlink is a Patient Administration System (PAS) provider serving the UK NHS. Alcidion’s main products include Miya Precision – a platform which delivers a suite of flexible modules allowing consolidation of patient information from disparate sources, and Smartpage, a secure smartphone and web-based system for hospital communication and task management which facilitates clear and secure patient handover as well as management of non-clinical patient services. A key issue underpinning Alcidion’s proposition is a significant increase in patient-related data which hospital systems grappling with legacy IT have struggled to handle. In FY22 ALC has renewed and acquired significant contracts with Australian health systems and UK NHS Trusts resulting in a 42% increase in recurring revenue.

Alcidion Group Limited

• 08 Nov 22
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